The Mumbai bench of NCLT, on Monday, gave a go ahead to Reliance Retail to seek creditors’ nod for the proposed ₹24,713 crore deal to acquire Future Retail. The NCLT also set aside objections raised by Amazon terming them as “premature”.
Last month, the Bench had also allowed a similar application by Future Retail. Future Group had also filed a plea to hold a shareholders’ meeting and seek their approval for the consolidation of its companies.
But the decision by the NCLT does not mean that Reliance can finally acquire Future Retail because the Supreme Court has stalled any final order or approval.
How it happened
In August last year, Reliance Retail Ventures (RRVL) had said it will acquire the retail and wholesale business, and the logistics and warehousing business of Future Group. However, Amazon, which is an investor in Future Coupons in 2019 had opposed the deal.
This comes in the backdrop where Amazon has dragged Future Retail to the Singapore International Arbitration Centre where an Emergency Arbitrator passed an interim order in favour of Amazon. The e-commerce giant later moved Indian courts to implement this order.
Meanwhile, Reliance Retail has extended the time period to conclude the deal to acquire Future Retail by another six months as it fights a lengthy legal battle with Amazon.